Skip to main content

Missed the income tax return (ITR) filing deadline of 31st July?

What happens if you missed the deadline of 31st July to file income tax returns?  While an assessee has paid advance tax and TDS (ideally) by 31st March of every year, 31st July is the last date for filing income tax returns (ITR) as set by the Income Tax department. Let us see what happens if you miss the deadline and what penalties you might end up paying.

Before we look at the repercussions, let us quickly see how the years are referenced in income tax lingo. 2009-2010 is called the Previous Year (PY) as that is the year in which you earned your income while 2010-2011 is called the Assessment Year (AY) as you are assessing your income in 2010-2011 for the Previous Year 2009-2010. Right through this article, we will use PY and AY to mean 2009-2010 and 2010-2011 respectively.

If you missed the income tax return (ITR) filing deadline of 31st July, the income tax department gives a reprieve by allowing you to file it after 31st July without any penalty if and only if you file before March 31st 2011 and you have no tax liability to pay to the government. This means that you have all the 12 months of the Assessment Year to file your returns provided your tax liability is zero.

After the first year is over, you have to pay penalties to the tune of Rs 5,000/-. So for this Previous Year, if you do not file income tax returns by 31st March 2011, you will pay a flat penalty of Rs 5,000/-. This penalty can be waived if you have a genuine reason for not having filed your ITR.

So, in case of zero tax liability:

  • income tax can be paid till end of the Assessment Year with no penalty
  • income tax can be paid beyond Assessment Year with a penalty of Rs 5,000/-

What happens if you have a tax liability and have missed the income tax return filing deadline?

In such a case, you will have to  pay 1% per month on the amount of  liability starting from August. So, from August 2010, you will pay a penalty of 1% per month on your liability till the time you file your returns. Obviously, if you have a liability and are filing your ITR after the Assessment Year is over, you will pay 1% per month and Rs 5000/- as penalty.

So, in case of tax liability:

  • income tax can be paid with a penalty of 1% per month on the outstanding tax liability
  • income tax can be paid till end of the Assessment Year with no penalty (of Rs 5,000/-)
  • income tax can be paid beyond Assessment Year with a penalty of Rs 5,000/-

Other caveats you need to be aware of if you are filing your ITR after the deadline of  31st July : 

Be aware of:

  • You cannot carry over/forward losses that you have incurred in this year.
  • In case of refund, interest will be calculated from the date you filed your return instead of 1st April.
  • You will not be allowed to revise your return in case of mistake in original return.
  • In fact, the returns can be filed within two years. So for this Previous Year (2009-2010), you have time till 31st  March 2012 to file your returns subject to penalties and some benefits that you lose. If you do not file within these 2 years, you might not be allowed to file it at all.

The conclusion is that, you are better off dead than to be late to file your income tax returns. Jokes apart, the benefits of filing your ITR are more than not. So, don't delay this important task for later. Do it now. Death and the taxman cometh! Both are inevitable.

 

Popular posts from this blog

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now